{"title":"On the properties of the two main types of global poverty lines","authors":"Benoit Decerf","doi":"10.1016/j.jdeveco.2024.103396","DOIUrl":"10.1016/j.jdeveco.2024.103396","url":null,"abstract":"<div><div>Global poverty lines belong to two main types that differ on how the poverty line’s nominal monetary amount is adjusted to prevailing prices and preferences. “Objective” poverty lines capture the cost of a fixed list of achievements. “Welfaristic” poverty lines capture the cost of a fixed level of welfare. Longstanding debates oppose their respective proponents. This conceptual paper is the first to contrast the properties of these two types of poverty lines. Our framework considers both heterogeneous prices and heterogeneous preferences. Our results clarify the normative principles that differentiate them and shed light on these debates. Which type of poverty line satisfies stronger versions of our properties depends on the extent of preferences heterogeneity. We show that, under heterogeneous preferences, the World Bank’s International Poverty Line cannot consistently reflect a fixed list of achievements.</div></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":"173 ","pages":"Article 103396"},"PeriodicalIF":5.1,"publicationDate":"2024-11-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142720968","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Lenin H. Balza , Camilo De Los Rios , Raul Jimenez Mori , Osmel Manzano
{"title":"The local human capital costs of oil exploitation","authors":"Lenin H. Balza , Camilo De Los Rios , Raul Jimenez Mori , Osmel Manzano","doi":"10.1016/j.jdeveco.2024.103410","DOIUrl":"10.1016/j.jdeveco.2024.103410","url":null,"abstract":"<div><div>This paper explores the local-level impacts of oil exploitation on human capital accumulation in Colombia, a resource-rich developing country. We provide evidence based on detailed spatial and temporal data on oil exploitation and education, using the number of wells to measure treatment intensity at the school level. To derive causal estimates, we rely on an instrumental variable approach that exploits the exogeneity of international oil prices and a proxy of local oil endowments. The results indicate that although oil exploitation does not impact enrollment in higher education, it may negatively affect human capital in Colombia since it generates a delay in the decision to enroll. Furthermore, it incentivizes talent allocation away from STEM and professional degrees. Our results suggest no effect on either the quality of secondary education or tertiary education completion. These results are robust to a number of specification changes, and we stress the role of local markets and spillovers as the main transmission channel. In particular, we find that higher oil production increases formal wages, without finding evidence of a premium to tertiary education enrollment in oil-producing areas, and there is a positive spillover to other economic sectors.</div></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":"173 ","pages":"Article 103410"},"PeriodicalIF":5.1,"publicationDate":"2024-11-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142720969","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Cover more for less: Targeted drug coverage, chronic disease management, and medical spending","authors":"Julie Shi , Wanyu Yang , Ye Yuan","doi":"10.1016/j.jdeveco.2024.103399","DOIUrl":"10.1016/j.jdeveco.2024.103399","url":null,"abstract":"<div><div>A key challenge in expanding public health insurance programs is how to deliver these programs cost-effectively with limited budget. This paper studies a value-based insurance design that introduced prescription drug coverage for two chronic diseases—hypertension and diabetes. This targeted drug coverage scheme increased the use of primary care and sharply reduced hospitalizations, leading to substantial net savings in total medical expenditure. Three operating channels were in play. First, a hospitalization offset was achieved by stimulating regular use of primary care and improving disease management. Second, the offset occurred more notably for nontargeted chronic diseases, suggesting a strong positive cross-disease spillover effect. Third, learning contributed to more efficient management of both targeted and nontargeted diseases. Our findings highlight a viable value-based insurance design, especially for developing countries with limited funding.</div></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":"172 ","pages":"Article 103399"},"PeriodicalIF":5.1,"publicationDate":"2024-11-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142703818","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abhijit Banerjee , Martínez A. Claudia , Esteban Puentes
{"title":"Better strategies for saving more: Evidence from three interventions in Chile","authors":"Abhijit Banerjee , Martínez A. Claudia , Esteban Puentes","doi":"10.1016/j.jdeveco.2024.103405","DOIUrl":"10.1016/j.jdeveco.2024.103405","url":null,"abstract":"<div><div>Individual behavioral biases can affect savings behavior. We conduct an experiment to evaluate different strategies to increase savings. We compare an automatic savings plan (or default rule), monthly reminders, and a rule-of-thumb savings package that appeals to careful spending. We find that rule-of-thumb and default rules can increase savings for one year after the intervention. In contrast, reminders can reduce account balances and debt levels. The increase in savings under the default rule is produced by a (mechanical) increase in deposits, but savings is later decreased by an increase in withdrawals.</div></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":"173 ","pages":"Article 103405"},"PeriodicalIF":5.1,"publicationDate":"2024-11-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142747141","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Corrigendum to “Rural road stimulus and the role of matching mandates on economic recovery in China” [J. Dev. Econ. 166, (January 2024), 103211]","authors":"Anthony Howell","doi":"10.1016/j.jdeveco.2024.103400","DOIUrl":"10.1016/j.jdeveco.2024.103400","url":null,"abstract":"<div><div>This paper explores the implications for economic recovery of a rural road stimulus program in China that led to the sudden suspension of local matching mandates. The main results reveal that a temporary cost share exemption stimulates short-term income growth in treated villages. As an explanation, I find that a cost share exemption leads to larger increases on local investment mainly on allied road improvements and to a lesser extent support for rural enterprise development and agricultural services. The observed crowding-in effects are further linked to the realloction of households out of agriculture and a rise in entrepreneurial activities by returning migrants. The findings imply that matching mandates impede the ability of fiscally constrained locales to mobilize sufficient resources to cover their share of project costs, contributing to inadequate road investment from upper-levels of government. Suspending matching mandate helps to relax local budget constraints, stimulating income and local multipliers that help to accelerate economic recovery.</div></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":"172 ","pages":"Article 103400"},"PeriodicalIF":5.1,"publicationDate":"2024-11-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142720256","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A tale of framing and screening: How health messaging and house screening affect malaria transmission in Ethiopia","authors":"Solomon Balew , Erwin Bulte , Zewdu Abro , Abebe Asale , Clifford Mutero , Menale Kassie","doi":"10.1016/j.jdeveco.2024.103407","DOIUrl":"10.1016/j.jdeveco.2024.103407","url":null,"abstract":"<div><div>Malaria is a major public health problem in Africa. Traditional methods of controlling malaria no longer provide adequate protection against transmission, and future approaches likely require a combination of technical solutions and behavioral change. We use a cluster randomized controlled trial to study the impacts of an intervention that combines house screening with a behavioral intervention based on health messaging. While house screening provides modest positive benefits, these benefits can be leveraged if it is combined with health messaging. We provide tentative evidence that the impact of messaging varies with the design of the choice architecture: loss-framed health messages seem to do better than gain-based messages––our data suggest they may have larger and more durable effects on behavior and health outcomes.</div></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":"172 ","pages":"Article 103407"},"PeriodicalIF":5.1,"publicationDate":"2024-11-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142662774","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Lina Meng , Pengfei Liu , Yinggang Zhou , Yingdan Mei
{"title":"Blaming the wind? The impact of wind turbine on bird biodiversity","authors":"Lina Meng , Pengfei Liu , Yinggang Zhou , Yingdan Mei","doi":"10.1016/j.jdeveco.2024.103402","DOIUrl":"10.1016/j.jdeveco.2024.103402","url":null,"abstract":"<div><div>We quantitatively assess the impacts of onshore wind turbines on bird diversity using citizen science data in China. Results show that a one-standard-deviation increase in wind turbines reduces bird abundance by 9.75% and leads to a 12.2% reduction in bird species richness at the county level. The negative impacts are more significant in migrant birds, birds in forests, urban and farmlands than others. Biodiversity protection helps to safeguard bird abundance against wind turbines. We also find that habitat loss rather than food chain change after the wind turbine installations contributes to biodiversity loss. The net impact of wind turbines on the environment is positive when considering the carbon reduction effects.</div></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":"172 ","pages":"Article 103402"},"PeriodicalIF":5.1,"publicationDate":"2024-11-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142662773","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Catia Batista , David M. Costa , Pedro Freitas , Gonçalo Lima , Ana B. Reis
{"title":"What matters for the decision to study abroad? A lab-in-the-field experiment in Cape Verde","authors":"Catia Batista , David M. Costa , Pedro Freitas , Gonçalo Lima , Ana B. Reis","doi":"10.1016/j.jdeveco.2024.103401","DOIUrl":"10.1016/j.jdeveco.2024.103401","url":null,"abstract":"<div><div>Study abroad migration is the fastest growing international migration flow. However, the college completion rates of students from low-income countries are often modest in OECD countries, raising the hypothesis that these migrants are poorly informed about the costs and benefits of their decision. Our work tests this hypothesis by running a lab-in-the-field experiment where graduating high school students in Cape Verde are faced with incentivized decisions to apply for college studies abroad. Our results show that potential migrants react strongly to information about the availability of financial support and about college completion rates. Since subjects’ prior beliefs on availability of financial support are overestimated, it is likely that study migrants need to shift their time from study to work after uninformed migration, which likely harms their scholar performance. Policies that inform potential migrants of actual study funding possibilities should decrease study migration flows but may improve successful graduation.</div></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":"173 ","pages":"Article 103401"},"PeriodicalIF":5.1,"publicationDate":"2024-11-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142720970","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"E-invoicing, tax audits and VAT compliance","authors":"Christos Kotsogiannis , Luca Salvadori , John Karangwa , Innocente Murasi","doi":"10.1016/j.jdeveco.2024.103403","DOIUrl":"10.1016/j.jdeveco.2024.103403","url":null,"abstract":"<div><div>Difficult to find another policy shift that has promised as much for tax compliance in developing countries as digitalization. Yet the evidence on its impact is scant. Using the universe of tax filings in Rwanda over the period 2012–2019, this paper investigates the extent to which digitalization (in the form of e-invoicing) has impacted on VAT compliance and in particular the effectiveness of tax audits. The evidence suggests that on the aggregate e-invoicing adoption has increased firms’ net VAT payments and has improved the efficiency of VAT audits. It is also shown that e-invoicing has a sizeable impact on VAT liabilities reported by audited firms, with this impact being attributed to tax audits being more efficient rather than to VAT registered firms becoming more compliant following their adoption of e-invoicing.</div></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":"172 ","pages":"Article 103403"},"PeriodicalIF":5.1,"publicationDate":"2024-11-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142703817","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Diether W. Beuermann , Bridget Hoffmann , Marco Stampini , David L. Vargas , Diego Vera-Cossio
{"title":"Shooting a moving target: Evaluating targeting tools for social programs when income fluctuates","authors":"Diether W. Beuermann , Bridget Hoffmann , Marco Stampini , David L. Vargas , Diego Vera-Cossio","doi":"10.1016/j.jdeveco.2024.103395","DOIUrl":"10.1016/j.jdeveco.2024.103395","url":null,"abstract":"<div><div>A key challenge for policymakers in low- and middle-income countries is to design a method to select beneficiaries of social programs when income is unobservable and volatile. We use a unique panel dataset of a random sample of households in Colombia’s social registry that contains information before, during, and after the 2020 economic crisis to evaluate a traditional static proxy-means test (PMT) and three policy-relevant alternatives. We consider targeting metrics and social welfare under different curvatures of governments’ social welfare function, aggregate economic environments, and budgetary and political constraints. Updating the PMT data does not improve social welfare relative to the static PMT. Relaxing the eligibility threshold reduces the exclusion error, increases the inclusion error, and increases social welfare. A dynamic method that uses data on shocks to estimate a variable component of income reduces exclusion errors and limits the expansion in coverage, increasing social welfare during the economic crisis.</div></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":"172 ","pages":"Article 103395"},"PeriodicalIF":5.1,"publicationDate":"2024-11-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142662775","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}